DOWLING & PARTN Issues Pessimistic Estimate for PRU Earnings

Key Points

• DOWLING & PARTN lowered its FY2027 EPS estimate for Prudential Financial to $13.80 from $14.60, below the $14.37 consensus forecast, and projected FY2028 EPS of $15.30.
• Prudential’s latest quarterly results beat expectations, with EPS of $4.08 versus the $3.52 consensus, although revenue of $14.15 billion fell short of estimates.
• Analyst sentiment remains cautious: the stock has an average “Reduce” rating and a $107.15 price target, despite offering a 4.9% dividend yield and institutional ownership of 56.83%.

Prudential Financial, Inc. (NYSE:PRU - Free Report) - Research analysts at DOWLING & PARTN lowered their FY2027 EPS estimates for shares of Prudential Financial in a report released on Tuesday, October 20th. DOWLING & PARTN analyst J. Hurwitz now forecasts that the financial services provider will post earnings per share of $13.80 for the year, down from their previous estimate of $14.60. The consensus estimate for Prudential Financial's current full-year earnings is $14.37 per share. DOWLING & PARTN also issued estimates for Prudential Financial's FY2028 earnings at $15.30 EPS.

Prudential Financial (NYSE:PRU - Get Free Report) last issued its quarterly earnings results on Tuesday, August 4th. The financial services provider reported $4.08 EPS for the quarter, topping the consensus estimate of $3.52 by $0.56. Prudential Financial had a net margin of 6.51% and a return on equity of 16.68%. The company had revenue of $14.15 billion during the quarter, compared to analysts' expectations of $14.36 billion. During the same quarter in the previous year, the company earned $3.58 EPS.

Several other analysts have also recently commented on the stock. Wells Fargo & Company dropped their target price on shares of Prudential Financial from $110.00 to $104.00 and set an "underweight" rating for the company in a research report on Monday, October 12th. JPMorgan Chase & Co. reduced their price target on Prudential Financial from $131.00 to $127.00 and set a "neutral" rating on the stock in a research report on Thursday, October 15th. Mizuho set a $108.00 price objective on Prudential Financial in a research note on Monday, October 12th. Barclays dropped their price objective on Prudential Financial from $96.00 to $94.00 and set an "underweight" rating for the company in a report on Monday. Finally, Jefferies Financial Group increased their target price on Prudential Financial from $105.00 to $110.00 and gave the company a "hold" rating in a research note on Friday, July 10th. One equities research analyst has rated the stock with a Buy rating, ten have issued a Hold rating and five have given a Sell rating to the stock. Based on data from MarketBeat, the stock has an average rating of "Reduce" and an average price target of $107.15.

Prudential Financial Price Performance

Shares of PRU stock opened at $114.80 on Thursday. Prudential Financial has a 52-week low of $91.89 and a 52-week high of $127.72. The stock has a market cap of $39.61 billion, a PE ratio of 10.40, a PEG ratio of 1.73 and a beta of 0.85. The company has a debt-to-equity ratio of 0.62, a quick ratio of 0.16 and a current ratio of 0.16. The firm's 50 day moving average price is $117.98 and its two-hundred day moving average price is $111.25.

Institutional Investors Weigh In On Prudential Financial

A number of hedge funds have recently modified their holdings of the business. NBT Bank N.A. bought a new stake in Prudential Financial during the 3rd quarter worth approximately $2,214,000. SBI Securities Co. Ltd. boosted its holdings in shares of Prudential Financial by 6.1% in the third quarter. SBI Securities Co. Ltd. now owns 8,624 shares of the financial services provider's stock valued at $980,000 after buying an additional 499 shares during the period. Reyes Financial Architecture Inc. bought a new stake in shares of Prudential Financial during the third quarter worth $41,000. Cantor Fitzgerald Investment Advisors L.P. raised its holdings in shares of Prudential Financial by 2.2% during the third quarter. Cantor Fitzgerald Investment Advisors L.P. now owns 139,967 shares of the financial services provider's stock worth $15,898,000 after acquiring an additional 2,966 shares during the period. Finally, Magnus Financial Group LLC lifted its position in Prudential Financial by 4.8% in the 3rd quarter. Magnus Financial Group LLC now owns 2,472 shares of the financial services provider's stock valued at $281,000 after acquiring an additional 113 shares in the last quarter. Institutional investors and hedge funds own 56.83% of the company's stock.

Insider Buying and Selling at Prudential Financial

In related news, EVP Ann M. Kappler sold 7,652 shares of the firm's stock in a transaction on Friday, August 14th. The stock was sold at an average price of $125.01, for a total transaction of $956,576.52. Following the sale, the executive vice president owned 14,407 shares of the company's stock, valued at approximately $1,801,019.07. This trade represents a 34.69% decrease in their position. The sale was disclosed in a filing with the SEC, which can be accessed through this link. Also, major shareholder Insurance Co Of Ame Prudential sold 214,746 shares of Prudential Financial stock in a transaction dated Tuesday, July 28th. The stock was sold at an average price of $24.75, for a total value of $5,314,963.50. Following the transaction, the insider owned 7,973,657 shares in the company, valued at approximately $197,348,010.75. This represents a 2.62% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Company insiders own 0.05% of the company's stock.

Prudential Financial Announces Dividend

The company also recently announced a quarterly dividend, which was paid on Thursday, September 10th. Shareholders of record on Tuesday, August 25th were issued a $1.40 dividend. The ex-dividend date was Tuesday, August 25th. This represents a $5.60 annualized dividend and a yield of 4.9%. Prudential Financial's dividend payout ratio (DPR) is 50.72%.

Prudential Financial News Roundup

Here are the key news stories impacting Prudential Financial this week:

• Positive Sentiment: Prudential agreed to sell its Brazil and Mexico insurance operations to CNP Assurances for approximately $4.025 billion in cash. The transaction could provide substantial capital, simplify Prudential’s international footprint and sharpen its focus on core businesses. The deal is subject to closing adjustments and customary conditions. Prudential Financial Agrees to Sell Operations in Brazil and Mexico
• Positive Sentiment: Prudential partnered with SoFi to expand access to life insurance. The relationship may broaden Prudential’s digital distribution and customer reach, although the financial contribution was not disclosed. SoFi ties up with Prudential Financial for expanded access to life insurance
• Neutral Sentiment: Prudential Wealth Advisors plans to increase recruiting through a centralized operating model. The initiative could support longer-term growth, but its near-term effect on earnings is uncertain. Prudential Wealth Advisors set to ramp up recruiting
• Neutral Sentiment: Prudential Life Insurance Ghana launched PRUConnect, a customer-facing digital insurance platform. The product supports engagement and service improvements, but appears unlikely to materially affect consolidated results immediately. Prudential Life Insurance Ghana introduces PRUConnect
• Negative Sentiment: Analysts lowered their expectations for PRU. TD Cowen cut its price target from $114 to $112 and maintained a “hold” rating. Barclays and Morgan Stanley also reduced their price targets, reinforcing concerns about limited near-term upside. Barclays lowers expectations for Prudential Financial Morgan Stanley cuts Prudential Financial price target

About Prudential Financial

Prudential Financial, Inc NYSE: PRU is a global financial services company that provides insurance, retirement, investment management and related financial products. Founded in Newark, New Jersey, in 1875, the company serves individuals, businesses and institutional investors through a range of businesses and distribution channels.

In the United States, Prudential offers life insurance, annuities, retirement plans and employee benefits, including group life, disability and dental insurance.

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